On Monday, Renault Chief Luca de Meo pointed out China’s remarkable competitiveness in the electric vehicle industry. He further urged European automakers to move fast in order to draw level with their Chinese rivals.
“China is very competitive when it comes to the supply chain of electric vehicles….we need to catch up fast.”
Luca de Meo, Renault CEO, told RTL Radio (via Reuters)
Chinese automakers target Europe, poses threat to local brands
Chinese brands like MG, BYD, and XPeng are reportedly aiming for the European EV industry. It is unsurprising, given that the region’s EV sales surged almost 55% to approximately 820,000 units in January to July. This remarkable sales figure accounted for around 13% of the automotive market.
XPeng aims to launch its P7 large sedan, G9, and G6 SUVs in Germany and France by 2024. It also had a strategic partnership with Volkswagen for an EV platform that would aid the German brand in competing in the Chinese EV market.
BMW Chief also warned that European brands may not survive in the base car market category if they fail to compete with Chinese automakers.
“The base car market segment will either vanish or will not be done by European manufacturers.”
BMW CEO Oliver Zipse (via Automotive News Europe)
Mercedes-Benz Chief also suggested that the EV race is like a “marathon.” It admitted that the company is only at kilometer eight or nine in the race.
“In this race, it is important to maintain tactical flexibility but have strategic clarity.”
Mercedes-Benz CEO Ola Kallenius
Meanwhile, XPeng President Brian Gu claimed that European automakers have a “huge commitment” to EVs. It cited their significant collaborations and investments to develop the technology.
“I would never discount the large (carmakers) trying really hard to come back and focus on this important transition.”
XPeng President Brian Gu
Entries in the IAA
On Monday, the French automaker debuted the all-electric variant of its Scenic compact SUV at the IAA Mobility Show.
Mercedes also revealed its new Concept CLA Class at the event. The model represents the prototype of its new compact cars lineup.
Volkswagen Group presented the VW ID. 2’s performance variant under the GTI nameplate. It also debuted Cupra’s DarkRebel show car that featured the parent company’s new design-oriented strategy for its 10 automotive brands.
In addition, BMW also exhibited its new Vision Neue Klasse at the event.
However, Chinese automakers’ dominance is more apparent at the Munich Auto Show. According to the report, approximately 41% of exhibitors are from Asia. Meanwhile, the number of participating Chinese brands increased by twofold from 2021.
BYD debuted its new EV models for the region, including the Seal U compact SUV and Seal EV. Notably, the Seal will have a base price of 44,900 euros ($48,470) in Germany to compete with the popular Tesla Model 3.
What’s more to expect from Renault?
Renault announced plans to officially reveal the prices of its new Scenic EV model this year. It aims to launch the model as early as Q1 2024.
Chief de Meo stated that the new Scenic EV will have a price range attractive to many customers. It will apparently cost similar to comparable hybrid models.
He also noted that the company’s collaborations with Chinese companies will enable it to reduce battery cell costs by half. According to Industry Analyst Ferdinand Dudenhoeffer, Chinese battery makers are “world champions” in the technology, which can account for 40% of an electric car’s overall cost.
See Also:
- China-based SVOLT announces plans to develop five European plants
- Auto Supplier: China’s small EVs enjoy €10,000 cost advantage over European cars
- European demand causes China’s EV exports to skyrocket
- Volkswagen follows automakers in selling China-built EVs in Europe by 2024
- China’s EV Manufacturers Target Expansion in Europe
Due to their technological prowess, Chinese automakers undoubtedly lead the charge in electric vehicle development. Their offerings are also notably way cheaper than other foreign brands due to their affordable raw materials and strong supply chain. All that said, it would be unsurprising if they continue to overthrow European brands and dominate the EV market.
